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Turkish Cypriot land prices up 172% in two years
23/11/2005
www.financialmirror.com
Economy also catching up
Land prices in northern Cyprus have rocketed by 172% in two years and prices of housing units have leapt 36%, according to research carried out by S. Platis Economic Research and sponsored by the Peace Research Institute of Oslo (PRIO).
This is much faster growth than in the south, where land prices have risen by 14% and house prices by 10% in the same period between the first half of 2003 and the first half of 2005.
These are just some of the preliminary findings of wider paper that will be presented on Saturday by the authors, Director of S. Platis Economic Research Dr Stelios Platis, Stelios Oprhanides and Fiona Mullen at a conference hosted by PRIO at Ledra Palace entitled “Peacebuilding in Divided Societies”.
The full-day conference will hold discussions and workshops on property, immigration and approaches to the teaching of history.
The authors gathered a large database of asking prices in the north and used the BuySell database in the south as part of a wider project to test the viability of the property regime under a post-solution scenario.
Although they found evidence of a slowdown in prices after the Orams case, when a Greek Cypriot filed a court case against a British couple that had built on his land, they found that prices continue to rise on a year-on-year basis.
Economy also catching up
The research also found that incomes in the north are also catching up with the south.
Within just three years, GNP per capita in the north rose from 31.4% of the south in 2002 to 41.3% of the south in 2004.
This is related to the difference in growth rates.
While real GNP growth in the north averaged 9.3% in 2002-04, it averaged only 3.6% in the south. In fact, the economy in the north has been rising faster than the economy in the south for ten years: at an average 4.4% in 1995-2004, compared with 3.6% in the south.
A rise in per capita incomes and a rise in property prices would have an important impact on the viability of the property regime as envisaged in the Annan Plan.
On Saturday the authors will also present the results of their viability test for the Property Board (the body charged under the Annan Plan with property restitution and compensation) under four different price-growth scenarios.